NOTE 16—SEGMENT INFORMATION

As of September 30, 2016, we operated through three reportable business segments: triple-net leased properties, senior living operations and office operations. Under our triple-net leased properties segment, we invest in and own seniors housing and healthcare properties throughout the United States and the United Kingdom and lease those properties to healthcare operating companies under “triple-net” or “absolute-net” leases that obligate the tenants to pay all property-related expenses. In our senior living operations segment, we invest in seniors housing communities throughout the United States and Canada and engage independent operators, such as Atria and Sunrise, to manage those communities. In our office operations segment, we primarily acquire, own, develop, lease and manage MOBs and life science and innovation centers throughout the United States. Information provided for “all other” includes income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to any of our three reportable business segments. Assets included in “all other” consist primarily of corporate assets, including cash, restricted cash, deferred financing costs, loans receivable and investments, and miscellaneous accounts receivable.

We evaluate performance of the combined properties in each reportable business segment based on segment profit, which we define as NOI adjusted for income/loss from unconsolidated entities. We define NOI as total revenues, less interest and other income, property-level operating expenses and office building services costs. We consider segment profit useful because it allows investors, analysts and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies between periods on a consistent basis. In order to facilitate a clear understanding of our historical consolidated operating results, segment profit should be examined in conjunction with net income as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Quarterly Report on Form 10-Q.

Interest expense, depreciation and amortization, general, administrative and professional fees, income tax expense, discontinued operations and other non-property specific revenues and expenses are not allocated to individual reportable business segments for purposes of assessing segment performance. There are no intersegment sales or transfers.

Summary information by reportable business segment is as follows:



	For the Three Months Ended September 30, 2016
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	210,424	$	—	$	158,273	$	—	$	368,697
Resident fees and services	—		461,974		—		—		461,974
Office building and other services revenue	1,246		—		2,211		860		4,317
Income from loans and investments	—		—		—		31,566		31,566
Interest and other income	—		—		—		562		562
Total revenues	$	211,670	$	461,974	$	160,484	$	32,988	$	867,116
Total revenues	$	211,670	$	461,974	$	160,484	$	32,988	$	867,116
Less:
Interest and other income	—		—		—		562		562
Property-level operating expenses	—		312,145		48,972		—		361,117
Office building services costs	—		—		974		—		974
Segment NOI	211,670		149,829		110,538		32,426		504,463
Income from unconsolidated entities	584		75		238		34		931
Segment profit	$	212,254	$	149,904	$	110,776	$	32,460	505,394
Interest and other income									562
Interest expense									(105,063		)
Depreciation and amortization									(208,387		)
General, administrative and professional fees									(31,567		)
Loss on extinguishment of debt, net									(383		)
Merger-related expenses and deal costs									(16,217		)
Other									(2,430		)
Income tax benefit									8,537
Income from continuing operations									$	150,446



	For the Three Months Ended September 30, 2015
	Triple-Net Leased Properties			Senior Living Operations		Office Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	201,028		$	—	$	142,755	$	—		$	343,783
Resident fees and services	—			454,825		—		—			454,825
Office building and other services revenue	1,011			—		8,459		530			10,000
Income from loans and investments	—			—		—		18,924			18,924
Interest and other income	—			—		—		74			74
Total revenues	$	202,039		$	454,825	$	151,214	$	19,528		$	827,606
Total revenues	$	202,039		$	454,825	$	151,214	$	19,528		$	827,606
Less:
Interest and other income	—			—		—		74			74
Property-level operating expenses	—			304,540		43,305		—			347,845
Office building services costs	—			—		6,416		—			6,416
Segment NOI	202,039			150,285		101,493		19,454			473,271
(Loss) income from unconsolidated entities	(1,431		)	433		108		(65		)	(955		)
Segment profit	$	200,608		$	150,718	$	101,601	$	19,389		472,316
Interest and other income											74
Interest expense											(97,135		)
Depreciation and amortization											(226,332		)
General, administrative and professional fees											(32,114		)
Loss on extinguishment of debt, net											(15,331		)
Merger-related expenses and deal costs											(62,145		)
Other											(4,795		)
Income tax benefit											10,697
Income from continuing operations											$	45,235



	For the Nine Months Ended September 30, 2016
	Triple-Net Leased Properties		Senior Living Operations		Office Operations		All Other		Total
	(In thousands)
Revenues:
Rental income	$	635,030	$	—	$	446,496	$	—	$	1,081,526
Resident fees and services	—		1,390,387		—		—		1,390,387
Office building and other services revenue	3,676		—		10,556		2,774		17,006
Income from loans and investments	—		—		—		78,098		78,098
Interest and other income	—		—		—		792		792
Total revenues	$	638,706	$	1,390,387	$	457,052	$	81,664	$	2,567,809
Total revenues	$	638,706	$	1,390,387	$	457,052	$	81,664	$	2,567,809
Less:
Interest and other income	—		—		—		792		792
Property-level operating expenses	—		932,675		136,619		—		1,069,294
Office building services costs	—		—		6,277		—		6,277
Segment NOI	638,706		457,712		314,156		80,872		1,491,446
Income from unconsolidated entities	738		732		301		380		2,151
Segment profit	$	639,444	$	458,444	$	314,457	$	81,252	1,493,597
Interest and other income									792
Interest expense									(312,001		)
Depreciation and amortization									(666,735		)
General, administrative and professional fees									(95,387		)
Loss on extinguishment of debt, net									(3,165		)
Merger-related expenses and deal costs									(25,073		)
Other									(8,901		)
Income tax benefit									28,507
Income from continuing operations									$	411,634



	For the Nine Months Ended September 30, 2015
	Triple-Net Leased Properties			Senior Living Operations			Office Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	571,591		$	—		$	420,287	$	—		$	991,878
Resident fees and services	—			1,356,384			—		—			1,356,384
Office building and other services revenue	3,286			—			25,066		1,599			29,951
Income from loans and investments	—			—			—		66,192			66,192
Interest and other income	—			—			—		719			719
Total revenues	$	574,877		$	1,356,384		$	445,353	$	68,510		$	2,445,124
Total revenues	$	574,877		$	1,356,384		$	445,353	$	68,510		$	2,445,124
Less:
Interest and other income	—			—			—		719			719
Property-level operating expenses	—			902,154			129,152		—			1,031,306
Office building services costs	—			—			19,098		—			19,098
Segment NOI	574,877			454,230			297,103		67,791			1,394,001
(Loss) income from unconsolidated entities	(785		)	(221		)	226		(417		)	(1,197		)
Segment profit	$	574,092		$	454,009		$	297,329	$	67,374		1,392,804
Interest and other income												719
Interest expense												(263,422		)
Depreciation and amortization												(657,262		)
General, administrative and professional fees												(100,399		)
Loss on extinguishment of debt, net												(14,897		)
Merger-related expenses and deal costs												(105,023		)
Other												(13,948		)
Income tax benefit												27,736
Income from continuing operations												$	266,308

Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment are as follows:



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2016		2015		2016		2015
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	12,992	$	1,318,868	$	69,642	$	1,878,857
Senior living operations	26,495		34,104		70,297		345,910
Office operations	1,400,742		10,317		1,451,347		498,491
Total capital expenditures	$	1,440,229	$	1,363,289	$	1,591,286	$	2,723,258

Our portfolio of properties and mortgage loan and other investments are located in the United States, Canada and the United Kingdom. Revenues are attributed to an individual country based on the location of each property.

Geographic information regarding our operations is as follows:



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2016		2015		2016		2015
	(In thousands)
Revenues:
United States	$	815,719	$	777,320	$	2,417,314	$	2,294,780
Canada	45,021		42,756		130,195		131,542
United Kingdom	6,376		7,530		20,300		18,802
Total revenues	$	867,116	$	827,606	$	2,567,809	$	2,445,124



	As of September 30, 2016		As of December 31, 2015
	(In thousands)
Net real estate property:
United States	$	19,266,865	$	18,271,829
Canada	1,066,924		1,039,561
United Kingdom	267,613		313,830
Total net real estate property	$	20,601,402	$	19,625,220